A new year, a new shipping IPO by private equity investor Wilbur Ross. Following on the steps of the very successful IPO of Navigator Holdings Ltd. (NVGS) last November, Diamond S Shipping Group, Inc. (DSG) filed yesterday a registration statement with the SEC for an initial public offering.
Diamond S Shipping Group, Inc. currently owns a fleet of 33 medium range (MR) product tankers. The company had acquired the first 30 vessels from CIDO for $1.165 billion in 2011. Last December Diamond S acquired an additional three vessels from CarVal (an investment arm of Cargill, Incorporated) for $83.7 million.
The IPO is intended to finance part of the acquisition cost of ten MR new-building vessels, currently under construction in Korea. The vessels will be delivered from September 2014 through January 2016. Diamond S has agreed to pay $380 million for the ten new-building vessels, and intends to raise $190 million, or 50% of the purchase price, in the upcoming IPO.
I have just started peering through the 206 page-long registration statement. I intend to follow-up with a complete analysis and valuation in the coming days. Until then, I would like to make the following observation:
The consortium of private investors led by WL Ross & First Reserve first committed $1 billion in equity to Diamond S Shipping Group in August 2011. The equity infusion was meant to finance the acquisition of the 30 MR tankers from CIDO, plus the construction cost of ten new-building vessels (eight Suezmax and two LR2 product carriers), that Diamond S had already ordered.
Those ten vessels, which have since been delivered to the company, are conspicuously absent from the upcoming IPO. Diamond S has decided to market itself as a pure MR play. Given the buzz surrounding medium range tankers on Wall Street these days, I cannot blame them.
ROME (Reuters) – An Italian judge on Friday cleared three migrant sea rescue charities that had been accused of abetting irregular immigration in complicity with human traffickers, throwing out a case opened...
(Bloomberg) — The closure of one of the East Coast’s busiest ports after the collapse of Baltimore’s Francis Scott Key Bridge has so far not led to broad price increases,...
(Bloomberg) — An Iranian ship that’s been linked to Houthi attacks in the Red Sea is returning home, removing a prominent asset in the area as the Islamic Republic braces...
April 18, 2024
Total Views: 1528
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.